Recent data reported by The Economic Times highlights a notable surge in India’s creative goods exports during the first seven months of FY26. Exports of jewellery, fashion accessories, carpets, and toys grew by approximately 7.3%, reaching USD 12.5 billion. The United Arab Emirates (UAE) has emerged as the largest destination, accounting for nearly 31% of these exports.
This growth trajectory is closely linked to the India–UAE Comprehensive Economic Partnership Agreement (CEPA), which has significantly reduced tariffs on key Indian exports such as gems and jewellery, textiles, handicrafts, and pharmaceuticals. While CEPA has opened doors for Indian brands to rapidly expand into the UAE market, it has also exposed them to serious intellectual property risks, particularly in the area of trademark protection.
Why Export Growth Increases IP Vulnerability
As Indian brands gain visibility in the UAE through increased exports, trade fairs, online platforms, and distributor networks, their brand names and logos become valuable commercial assets. However, many Indian exporters enter the UAE market without securing trademark registrations, assuming that prior use or reputation will offer protection—as it often does in India.
This assumption can prove costly.
The Legal Conflict: “First-to-Use” vs. “First-to-File”
Indian trademark law largely recognizes the “First-to-Use” principle. Even without registration, brand owners may enforce rights if they can demonstrate prior and continuous use of the mark.
The UAE, however, follows a strict “First-to-File” system, where:
- Registration equals ownership: The first party to file a trademark application is generally presumed to be the lawful owner.
- Prior use offers limited protection: Evidence of use, reputation, or goodwill—especially if generated outside the UAE—may not prevent registration by another party.
- Trademark squatting is a real risk: Distributors, agents, competitors, or unrelated third parties may register an Indian brand in bad faith, blocking the legitimate owner from using its own mark in the UAE.
In such cases, Indian brand owners may be forced into expensive cancellation actions, rebranding exercises, or negotiations to buy back their own trademarks.
Preventive IP Strategies for Indian Exporters
- File Early, Before Market Entry – In a first-to-file jurisdiction like the UAE, timing is critical. Trademark applications should ideally be filed before the first shipment, distributor appointment, or marketing activity. Indian companies can leverage the Madrid Protocol to extend their Indian trademark registrations to the UAE, offering a streamlined and cost-effective route to protection.
- Register Core and Defensive Marks – Beyond brand names and logos, exporters should consider registering: Product names, Key taglines, Transliteration or Arabic versions of the mark, Packaging or label elements.
This helps prevent third parties from exploiting minor variations of the brand.
- Record Rights with UAE Customs – The UAE allows registered trademarks to be recorded with Customs authorities. This enables Customs to detain and seize counterfeit goods at ports and free zones—an essential tool for industries such as jewellery, fashion accessories, toys, and carpets, which are particularly vulnerable to counterfeiting.
- Address IP Ownership in Distribution Agreements – Many trademark disputes arise from poorly drafted distributor or agency agreements. Exporters should ensure that contracts clearly state that all IP rights remain with the Indian brand owner, and that distributors have no right to register or claim ownership of the trademarks in the UAE.
Conclusion
The FY26 export data confirms that the UAE is no longer merely a transit hub—it is a primary growth market for Indian creative industries. However, the legal protections Indian brand owners rely on domestically do not automatically extend to the UAE.
In a first-to-file jurisdiction, brand protection begins at the registry, not in the marketplace. As CEPA accelerates trade and brand visibility, proactive trademark filing and enforcement strategies are essential to safeguard long-term commercial value.
For Indian exporters, protecting intellectual property in the UAE is no longer optional—it is a business necessity.
For further information or assistance with UAE trademark protection and enforcement, please contact us at foreign@ssrana.com